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I think people are surprised by how many people do live in central London. Look up from places like Covent Garden and there are loads of flats, many of them LA/ex-LA ones.
My girlfriend was born and bred in Central London, she's still there and many of her mates and family are still in the same area as well but it's not so obvious until you're exposed to it.
aggi-
I grew up on the council estates of Pimlico, by the time I'd left school all of my classmates had already left the area because they couldn't get their own council flat/afford to stay in the area...
I left Pimlico Comprehensive School in 1985! #pluscachange
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A lot of the complaints aren't unique to London. This is one of the numerous articles on the phenomenon of livable cities.
http://www.city-journal.org/html/childless-city-13577.html
I do like London but, as a furriner, the really interesting bits in the centre of town are no longer lived in. They are now ghost towns of mega luxury, unoccupied properties that are money laundering exercises for unbelievably dodgy government officials from the former soviet republics. It's killing the place.